Summary
- First Digital Trust stated that FDUSD is fully backed by U.S. Treasury bonds.
- They claimed that Justin Sun's remarks were intended to undermine a competitor.
- The company announced plans to take legal action.
First Digital Trust, the issuer of FDUSD experiencing depegging, stated on the 2nd (local time) via X (formerly Twitter), "Justin Sun, the founder of TRON (TRX), claimed that we are effectively insolvent, which is not true," adding, "He is currently in a dispute with TUSD and has no relation to FDUSD."
They continued, "We are fully solvent, and all FDUSD issuance is fully backed by U.S. Treasury bonds," explaining, "FDUSD reserve information is clearly stated in the financial reports."
Furthermore, they added, "This incident is an attempt by Justin Sun to undermine a competitor," and "We plan to take legal action."
Previously, after Justin Sun raised concerns about First Digital Trust's ability to repay funds, FDUSD fell, leading to depegging.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
